1. Blue Ocean Strategy

2. Blue Ocean vs. Red Ocean Strategy

3. Blue Ocean vs. Red Ocean Strategy
Blue Ocean Strategy
Create uncontested market space
Make the competition irrelevant
Create and capture new demand
Red Ocean Strategy
Compete in existing market space
Beat the competition
Exploit existing demand.

4. Blue Ocean Strategy Tools
Strategy Canvas
Blue Ocean Strategy Tools
A diagnostic tool for building a
compelling blue ocean strategy.
It captures the current “state-of-play” in the known market space
Allows you to understand:
Where the competition is currently investing
The factors the industry currently competes on in product, service, and delivery
What customers receive from existing competitive offerings in the market

5. Four Action Framework
Eliminate
Raise
Reduce
Create

6. Four Action Framework Eliminate Reduce Raise Create
Which of the factors that the industry takes for granted should be eliminated?
Which factors should be reduced well below the industry standard?
Which factors should be raised well above the industry standard?
Which factors should be created that the industry has never offered?
Reduce
Raise
Create

7. Four Action Framework: The Case of Cirque du Soleil
Eliminate
Reduce
Star performers
Animal Shows
Aisle concession sales
Multiple Show Arenas
Fun and Humour
Thrill and Danger

8. Four Action Framework: The Case of Cirque du Soleil
Create
Raise
Theme
Refined environment
Multiple Productions
Artistic Music and Dance
Unique Venue

9. Six Principles of Blue Ocean Strategy
Formulation Principles
Reconstruct market boundaries
Focus on the big picture- not the numbers
Reach beyond existing demand
Get the strategic sequence right
Execution Principles
Overcome organizational hurdles
Build execution into strategy

10. Blue Ocean Activity
In groups of two or three you are to head out into the community and investigate three different players in a certain market. ( i.e. Pizza Hut, Boston Pizza, and Colonnade Pizza are all in the Pizza Restaurant market).
Your job is to compare these three competitors in the market and create a “Four Action Framework” to identify potential areas for new business.
You must have visited your three competitors by Friday as we will work on these frameworks in class at that time. You will also present your frameworks to the class on Friday.